Consumer financing in Pakistan continued to grow in September, with automobile loans rising to Rs407.12 billion as borrowing increased across several major categories, including housing and personal expenses.
Data released by the State Bank of Pakistan (SBP) showed that automobile financing rose 3.49 percent month-on-month from Rs393.4 billion in August. Compared with September last year, the amount was up 33.61 percent from Rs304.71 billion.
Housing finance recorded an even sharper increase. Outstanding loans for house building reached Rs365.44 billion in September, up 15.73 percent from Rs315.78 billion a month earlier. On a yearly basis, housing finance surged 71.88 percent.
Borrowing for personal use also increased, reaching Rs300.54 billion during the month. The figure was 1.3 percent higher than in August and 14.28 percent above the level recorded a year earlier.
The growth across these categories pushed total consumer financing to Rs1.29 trillion in September, marking a 4.86 percent increase from Rs1.23 trillion in August. Compared with the same month last year, consumer credit rose 34.45 percent.
The figures point to a continued expansion in borrowing for household needs, with automobile purchases and house building accounting for significant portions of consumer financing.
Private sector borrowing also increases
Beyond consumer loans, credit extended to Pakistan’s private sector continued to rise, reaching Rs11.28 trillion in September.
The outstanding amount was 16.64 percent higher than a year earlier and 3.36 percent above the Rs10.92 trillion recorded in August, according to the central bank’s data.
The manufacturing sector remained a major recipient of private sector credit. Outstanding loans to manufacturers reached Rs5.89 trillion, up 2.93 percent month-on-month and 12.25 percent year-on-year.
Credit to the construction sector also increased, rising to Rs227.44 billion in September. The amount was 2.3 percent higher than in August and 6.46 percent above the figure recorded a year earlier.
Agriculture, forestry and fishing recorded stronger annual growth. Loans to these sectors reached Rs709 billion during the month, representing an increase of 30.93 percent year-on-year and 3.07 percent from August.
The latest figures show that credit growth extended beyond households to several key areas of economic activity, including manufacturing, construction and agriculture.
However, the data measures outstanding financing and does not, by itself, establish whether the increase reflects stronger demand, improved lending conditions or a combination of factors.
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